Loan applications

It's a GREAT time to purchase a new home or refinance your existing one. Illinois State Credit Union helps our members get the very best mortgage interest rates when they are ready to buy a home or refinance their current home. At Illinois State Credit Union, you can get pre-qualified for up to 90 days!

We believe in educating our members to help them make the best financial choices. With that in mind, you can benefit from browsing the useful mortgage information that Illinois State Credit Union offers. For instance, take some time to read our Frequently Asked Questions, use our helpful Mortgage Calculators, or go over our Documentation Checklist(PDF) to make sure you have what you need when it comes time to apply for a mortgage.

Call us today at 309.451.8400 to speak with one of our Real Estate Specialists. We’re ready to help you get the best rate on a mortgage for your next home, condo, townhome, duplex, or second/vacation home!

HOME EQUITY LINE OF CREDIT

SECOND MORTGAGES

Second mortgages offer several advantages over other types of borrowing. Interest rates are fairly low, particularly when compared to credit cards or other unsecured loans. Moreover, the rate on Second Mortgage loans is fixed, so you will have security against rising mortgage rates and higher payments.

What types of mortgages does the credit union offer?

The credit union offers fixed-rate 30, 20, 15, and 10 year mortgages, adjustable rate mortgages, VA mortgages, and FHA mortgages, Jumbo mortgages (Jumbo mortgages are loan amounts greater than $417,000). We also offer financing on 1-4 family investment properties, 5, 10, or 15 year fixed-rate second mortgages and home equity line of credit loans.
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What is the interest rate today?

Click HERE to check rates. Rates are subject to change at any time.
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How can I make my mortgage payments?

You can transfer your payments automatically from your Illinois State Credit Union accounts, automatically transfer from another financial institution, or have your payments set up through ISU payroll deduction.
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What is a pre-qualification?

Pre-qualification is based on a verbal estimate by the borrower of their household income and monthly obligations. Based on these figures, we can give an estimate for which the borrower could expect to qualify. Pre-qualification is based on the borrower’s estimate and not on verified figures. Other factors, such as employment history and credit history, are also not verified for a pre-qualification.
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What does the pre-approval process entail? What is the fee for this? How long does it take to become pre-approved?

The next step after pre-qualification would be to apply to be pre-approved. The borrower would need to complete the application along with the attached disclosures and provide the necessary documentation shown on the checklist. The documents should be dropped off at the credit union or returned at the time of the initial appointment. Once the documentation is received, we can pre-approve you during your appointment (some restrictions may apply). At this point, the next step is to find a home and approve the property through the appraisal. Please contact the credit union for a mortgage loan packet or click HERE to fill out your application on line.
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When can I lock into an interest rate and for how long is it good?

An interest rate can be locked for 30-60 days once the property has been selected. (A borrower can’t lock during the pre-approval process until they have a property.) Once the interest rate is locked it can’t be lowered for any reason if rates drop. Please contact one of our mortgage loan officers for additional information.
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Is an appraisal required?

An appraisal is required for a purchase transaction or to refinance a mortgage. (The exception to this is, in some instances, an appraisal will not be required for a home equity that is less than $50,000.)
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Is an attorney required for this transaction?

An attorney is not a requirement at the closing of your home, but is highly recommended for purchase transactions.
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What is the minimum down payment required?

The minimum down payment for conventional loans is 5%. Programs such as VA may allow no down payment. Higher down payments may be required in situations.
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What is Private Mortgage Insurance (PMI)? Is it required for my loan?

Private Mortgage Insurance (PMI) is required for all mortgage loans with less than 20% down payment. This insurance is included in your monthly payment and protects the lender in the case of default.
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How long is required that I be employed with my employer?

Generally two years with the same employer or in the same line of work is considered stable work history. Also, schooling in a field related to your current employment is considered to be in the same line of work. Other situations will be reviewed on a case-by-case basis.
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What is considered acceptable credit history?

Generally any payments that have been past due over thirty (30) days in the past two (2) years may require a detailed letter of explanation. Each situation will be reviewed on a case-by-case basis with the following being of importance: the number of times delinquent, the type of account that is or was delinquent, the reason for the delinquencies and a satisfactory explanation as to why these won’t occur again.
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What are closing costs?

Closing costs range from $1,023-1,400. This estimate depends on numerous factors, such as whether your property is a purchase or refinance transaction, the amount of the loan, the location of the property, etc.
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What is the breakdown of these fees?

The estimate of the fees is as follows. These figures are only estimates and may be higher based on the given situation.

Credit report: $30.00

Appraisal: $325.00 to $400.00

Underwriting Fee: $425.00

Flood Certificate: $14.00

Title Charges: $403 (depends on the loan amount, additional title charges for purchases)

What is escrow? Is it required for my loan?

Escrow is where a portion of the real estate taxes and homeowner’s insurance on your property is included in your monthly payment. They are held in an escrow account until they come due and the mortgage company pays them from this account.

To calculate how much this will add to your monthly payment, calculate the total amount due in a year for real estate taxes, and homeowners insurance and divide that number by twelve. You may waive the requirement to escrow for homeowners insurance for any loan. However there are requirements that must be met to waive escrow for real estate taxes on your primary residence. Investment properties are required to escrow real estate taxes.
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Can I purchase homeowner’s insurance through the credit union?

Members are responsible for selecting their homeowner's insurance company.
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How long does it generally take to complete the process and close?

The mortgage process generally takes between 30–60 days. Since we rely on the services of others and many different situations may arise beyond our control, it sometimes may take longer. Please be assured we process all loans as quickly as possible.
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